Condos are often the go-to real estate option for Canadians who can’t afford a house. But that advice simply doesn’t apply anymore to Torontonians where condo prices are starting to match home prices. In fact, condos have now become the fastest appreciating housing type according to a recent study by Royal LePage – with the median price nationally rising by 3.4 per cent. Meanwhile, Toronto condos jumped by a whopping 9.2 per cent this year.
That’s a 6 per cent differential for the privilege of living in the most expensive city in Canada.
The study also showed that the price gap between condos and homes in Toronto is dramatically shrinking as condos surpassed the $600,000 mark this year to $618, 391 compared to the average $566,482 the year before. Within a national context, a Toronto condo costs more than the average Canadian home, with the city’s market able to sustain purchases up into the millions of dollars. Yes, some rich Torontonians actually prefer condo living.
Condos are priced just below bungalow housing, a segment which has also been overvalued within the Toronto market. The average price for your typical, quaint bungalow in Canada can cost you $521,250, whereas in Toronto, it can cost you as much as $870,179, or $811,090 in the GTA. Royal LePage’s House Price Survey showed that the Toronto condo market has surpassed people’s expectations in terms of price jumps. They’ve risen “a significant 7.9 per cent” over the past 12 months. That’s nearly double the rate of appreciation seen on condos at the national level.
A summer Zoocasa survey found that the prices of condos in some of the more desirable Toronto neighbourhoods have actually doubled since 2014. With price lockouts like these, it’s understandable why some millennials would be seduced into committing mortgage fraud.
Those who have already purchased a condo can rest assured that their investment is secured.